Airbnb agrees to collect state and local sales taxes in South Dakota

According to a recent filing with the Securities and Exchange Commission, home rental company Airbnb secured millions in funding.
Last September Airbnb raised $555 million in an F-funding round, but a new filing shows that more is on the way.
Filed on March 9th with the SEC, Airbnb has raised another $448 million for that round of funding.
After adding up the figures, that's about $1 billion in new funds from a single round.
The company also had a successful 2016, becoming profitable in the second half of last year.
naplesnews.com

A sampling of Sioux Falls properties listed for rental on Air BnB.(Photo: airbnb.com)

Airbnb travelers in South Dakota will pay a little more starting Sept. 1.

The company behind the vacation rental website announced Thursday that it's reached an agreement with South Dakota to start collecting and remitting state and local taxes.

The taxes — 4.5 percent to the state and between 1 and 2 percent to local governments — will be billed when a room or home is booked.

The move is a win for officials in South Dakota, which doesn't have an income tax and depends on sales taxes to fund government. Sales tax revenue has been in decline in part from a shift to online spending where tax collection is less consistent.

Meanwhile, South Dakota is locked in a court battle over internet sales tax collections with Overstock.com and other online businesses. The state hopes the lawsuit will force the U.S. Supreme Court to overturn a 1992 ruling that online retailers have used to duck taxes outside their home states.